IGNOU MHH 101 2026 2027 - Discuss Zero based Budgeting (ZBB) under following headings- Definitio

Question

Discuss Zero based Budgeting (ZBB) under following headings- Definition,
Objectives, Process, Limitation, Advantages.

18 Aug 2026

Answer :

Word Count : 452

Zero-Based Budgeting (ZBB) is a modern approach to budgeting in which every activity and expenditure must be justified from the beginning of each budget period. Unlike traditional budgeting, it does not simply take the previous year’s budget and add or subtract a percentage. ZBB starts from a “zero base” and evaluates all proposed expenses according to their need, usefulness, and contribution to organisational objectives. Definition: Zero-Based Budgeting is a budgeting technique in which all expenses are reviewed and justified for each new budget period, regardless of whether they existed in the previous period. Managers are

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